Archive | Canadian Media Resource Articles

RNC, private equity firm Waterton Global form nickel-focused partnership – by Henry Lazenby (MiningWeekly.com – March 22, 2017)

http://www.miningweekly.com/

VANCOUVER (miningweekly.com) – Canadian miner Royal Nickel Corp (RNC) has joined forces with private equity firm Waterton Global Resource Management (WGRM) to buy, develop and operate nickel assets.

The companies on Wednesday announced that they had inked a joint venture (JV) accord that will result in Waterton buying a 50% stake in RNC’s Dumont nickel project, in Quebec, for C$30-million in cash. The transaction values Dumont – billed as one of the world’s largest undeveloped nickel deposits – at about C$60-million.

RNC and Waterton have also agreed to inject $17.5-million each into the newly established limited partnership that will own Dumont, support its advancement to development, as well as to acquire other high-quality nickel assets globally. The JV entity’s objective is to establish a pure-play nickel company with multiple projects operating in stable jurisdictions. Continue Reading →

Key measures aimed at energizing Canadian high-tech clusters, like those in Ottawa-Gatineau – by James Bagnall (Ottawa Sun – March 23, 2017)

http://www.ottawasun.com/

Perhaps we should be a little insulted. There’s a section in Wednesday’s federal budget that highlights how a multitude of measures aimed at accelerating innovation are supposed to work.

The government wants us to create innovation superclusters — “dense areas of business activity” capable of attracting the very best talent and companies from around the world. To give us an idea of what these look like, the budget lists four urban areas that have already achieved this distinction: California’s Silicon Valley, Berlin, Tel Aviv and the Toronto-Waterloo corridor.

A nod in the direction of the capital region would have been nice. While it’s true Ottawa and Gatineau long ago lost the distinction of being the planet’s most important supercluster in matters of telecommunications technology, the cities’ innovators are mounting an impressive comeback. Continue Reading →

Silver Wheaton Corp wants a name change to reflect that gold makes up more than half its revenue – by Sunny Freeman (Financial Post – March 23, 2017)

http://business.financialpost.com/

TORONTO — Vancouver-based streaming company Silver Wheaton Corp. is proposing a name change to Wheaton Precious Metals Corp. as it seeks a brand that better reflects the increasingly large contribution gold is making to its bottom line.

“A lot of investors judged our book by its cover and so we’ve decided to change the cover,” chief executive officer Randy Smallwood said in an interview Wednesday. “The name change really reflects the fact that we are truly a precious metals company and not just a silver company.”

In 2004, Silver Wheaton pioneered the concept of financing miners upfront in return for a portion of future production at a fixed discounted price. The company started off in the silver space but has seen a marked increase in gold production since 2013. Continue Reading →

COMMENT: New chapter for Canadian diamonds? – by Marilyn Scales (Canadian Mining Journal – March 22, 2017)

http://www.canadianminingjournal.com/

“It’s been 10 years since Falconbridge and Inco were snapped up by Glencore
(then Xstrata) and Vale, respectfully. Canadians are still stinging from
the loss of our world leadership position in nickel production. We still
produce it, but the profits go elsewhere. Those profits include not only
cash from the metal sold but the innovation and proprietary technology
that generate worldwide acclaim.”

This writer has a fondness for Canadian diamonds, as do many CMJ readers. The stones are beautiful, world famous and conflict free – an excellent accomplishment for a sector that didn’t exist 35 years ago.

But could the Canadian diamond industry go the same way our nickel producers did – into foreign ownership?

The Washington Companies have expressed interest in acquiring Dominion Diamond Corp., owner of Canada’s first producer, the Ekati mine, and 40% owner of the Diavik mine (along with Rio Tinto). WashCorps made an offer on March 19 of US$13.50 per share for Dominion in a deal worth US$1.1 billion. Continue Reading →

If the elites are wrong about their ‘man-made climate change’ fixation, they’ll pay dearly for it – by John Robson (National Post – March 22, 2017)

 

http://www.johnrobson.ca/

http://news.nationalpost.com/

“In addition to the multitude of scientists who work in fields so remote
from climate as to have no professional opinion, there are countless
geologists, physicists, chemists and others who dissent over how much
(a) climate is changing (b) man is responsible and (c) it is dangerous.”

It’s impossible to ignore Donald Trump for any length of time. Even if he didn’t have his “finger on the button”, and whether you blame a “basket of deplorables” or “the elites” for his success, the obvious breakdown of trust between the public and those in authority is ominous. So we shouldn’t go about making it worse, right?

Clearly I am one of those who often uses “elites” in a pejorative sense, along with synonyms like “the chattering classes.” I have nothing against people earning respect through intelligence, wisdom, energy and above all character. Continue Reading →

Attawapiskat could have more prosperity, but not by getting local diamond mines to shut down – by Joseph Quesnel (Financial Post – March 22, 2017)

http://business.financialpost.com/

Attawapiskat First Nation — an isolated Northern Ontario reserve — played a prominent role in the Idle No More indigenous protest movement that erupted in 2012. Then Attawapiskat Chief Theresa Spence complained to the media about unacceptable housing conditions on her reserve. The movement was energized by Chief Spence’s decision to declare a hunger strike to raise awareness of the ongoing First Nation housing and infrastructure crises.

Attawapiskat’s band council was subjected to a government-commissioned audit in 2012 that found little proper documentation for millions of dollars spent by the band government.

Attawapiskat has largely fallen out of the news. But, a few weeks ago, diamond producer De Beers announced it was shelving plans for an expansion of a diamond mine located nearby. The company had planned to draw five or six more years of production from the mine. However, without Attawapiskat support, the company will not proceed. Continue Reading →

Dominion Diamond, Stornoway held merger talks: sources – by Nicole Mordant and John Tilak (Reuters Canada – March 20, 2017)

http://ca.reuters.com/

VANCOUVER/TORONTO (Reuters) – Dominion Diamond Corp DDC.TO DDC.N and fellow Canadian diamond miner Stornoway Diamond Corp SWY.TO have held talks about a potential merger in recent months, people familiar with the matter said on Monday.

World No. 3 diamond miner Dominion, target of a $1.1 billion bid by U.S. billionaire Dennis Washington, and Stornoway, a small miner with a diamond mine in Quebec, declined to comment. The people declined to be named as the discussions are private.

One of the people said the talks were still ongoing. The talks include Stornoway’s chief executive officer and president, Matt Manson, becoming CEO of the merged group, one source said, adding that the discussions on an all-share merger started in January. Continue Reading →

Morneau’s ‘clusters’ may not be an economic silver bullet – by Jennifer Wells (Toronto Star – March 22, 2017)

https://www.thestar.com/

The finance minister points to clusters as the basis for his innovation agenda. But studies show they may not be effective tools for public policy.

Budget day. Astute in the photo-op department, Finance Minister Bill Morneau will be sporting his ethically-sourced, made-in-Mexico Poppy Barley lace-ups. Poppy Barley is Edmonton based, so the finance minister gets a gold star for supporting Canadian business.

The custom shoe company was founded by sisters Justine and Kendall Barber, so two gold stars for championing women entrepreneurs. And Poppy Barley is transparent in its supply chain, so let’s give the finance minister full marks for ingenuity. How successful Morneau will be in selling his innovation agenda, however, is a different order of business.

This time last year the finance minister’s “Growing the Middle Class” budget highlighted a four-year, $800-million commitment “to support innovation networks and clusters” as part of that agenda. Continue Reading →

$5.5 billion private capital ready to invest in mining – by Frik Els (Mining.com – March 20, 2017)

http://www.mining.com/

According to a new report by private capital tracker Preqin, overall fundraising for natural resources investment actually declined declined by a fifth in 2016 to the lowest since 2012.

Coming off a record 2015, 74 funds raised a total of $60bn in 2016 for investment in natural resources, which includes metals and mining, water, timberland and energy. Private providers of capital include pension funds, sovereign wealth funds, endowments, family offices and others.

In 2015 mining and metals made up a paltry portion of funds raised with three funds closing on $1.1 billion in 2015. Last year five funds managed to raise $2.1 billion. 2012 was the peak year for mining fundraising with $4.6 billion of capital commitments from investors. Continue Reading →

Dominion Diamond in play following Washington Cos. takeover proposal – by Andrew Willis (Globe and Mail – March 20, 2017)

http://www.theglobeandmail.com/

Dominion Diamond Corp. is expected to attract interest from the world’s largest diamond miners after being put in play Sunday by a $1.1-billion [U.S.] hostile takeover proposal from conglomerate The Washington Companies.

Yellowknife-based Dominion owns stakes in the Ekati and Diavik diamond mines in the Northwest Territories, and caught the eye of the private Montana-based company controlled by billionaire Dennis Washington, who made his fortune in construction and now owns tugboats, trains and copper mines.

Washington held takeover talks with Dominion that stretched over three weeks, but broke down earlier this month. Washington went public Sunday with a plan to buy the diamond miner for $13.50 a share, a 36-per-cent premium on Dominion’s Friday closing price. Dominion stock prices jumped 20 per cent yesterday on news of the offer. Continue Reading →

PDAC 2017: What’s wrong with hedging? – by Trish Saywell (Northern Miner – March 14, 2017)

http://www.northernminer.com/

Barrick Gold (TSX: ABX; NYSE: ABX) pioneered gold hedging more than two decades ago, but the company endured sharp criticism when the strategy became a liability, and management eventually closed out its fixed-price hedge book at a significant cost in 2009.

The pros and cons of hedging remain the subject of debate to this day, and the topic came up during a discussion at the recent Prospectors & Developers Association of Canada convention in Toronto, when a participant asked a panel of bankers whether they thought the practice was a useful tool for the industry.

Egizio Bianchini of BMO Capital Markets — who prefaced his remarks by pointing out that BMO has the smallest commodity desk of all the banks represented on the panel, making him “the least conflicted” to answer the question — responded with an emphatic yes. Continue Reading →

OPINION: We need to start calling out corporate ‘redwashing’ – by Clayton Thomas-Müller (CBC News Opinion – March 20, 2017)

http://www.cbc.ca/news/opinion/

Redwashing is when corporations paint themselves as good neighbours by sponsoring Indigenous initiatives

Have you ever wondered why corporations and banks provide sponsorship for so many Indigenous educational, cultural and artistic institutions? Are they really good neighbours? Socially responsible corporate citizens? It seems like everywhere you look, there they are: sponsoring our Indigenous award shows, our schools, our pow wows — the list goes on.

In my own territory in northern Manitoba, we see the presence of Manitoba Hydro in just about every aspect of our community, including sponsorship of school barbecues and Treaty Days celebrations.

In Fort Chipewyan, Alta., Syncrude sponsors the local youth centre, where Dene, Cree and Métis youth go to learn and socialize. In northern Saskatchewan, uranium giant Cameco makes sure to report about the millions it spends on initiatives for aboriginal youth. Continue Reading →

Smaller global copper deficit seen in December – ICSG – by Henry Lazenby (MiningWeekly.com – March 21, 2017)

http://www.miningweekly.com/

VANCOUVER (miningweekly.com) – The International Copper Study Group said Monday the global copper market deficit had fallen back to about 50 000 t in December, following a deficit of about 90 000 t in November.

According to the group’s latest copper bulletin, world mine output is estimated to have increased by around 5%, or one-million tonnes, with concentrate output increasing by 7% and solvent extraction-electrowinning declining by 2%.

The increase in world mine output in 2016 was mainly attributable to a 38% (650 000 t) rise in Peruvian concentrate output that benefitted from new and expanded capacity brought on stream in the last two years, and a recovery in production levels in Canada, Indonesia and the US, and expanded capacity in Mexico. Continue Reading →

Dominion Diamond Surges on Offer by Billionaire Washington – by Scott Deveau (Bloomberg News – March 20, 2017)

https://www.bloomberg.com/

Dominion Diamond Corp. headed for the biggest gain in eight years after billionaire Dennis Washington went public with a $1.1 billion offer for the Canadian company after weeks of private talks hit an impasse.

Closely held Washington Cos. made the proposal to acquire Toronto-based Dominion Diamond for $13.50 a share on Feb. 21. Dominion’s board has stalled on the offer, Washington Cos. said in a statement Sunday. The bid carried a 36 percent premium to Dominion’s closing price on Friday. The stock rose 24 percent to $12.29 at 9:48 a.m. in New York Monday.

Washington Cos., which has interests in mining, marine and rail transportation and heavy equipment distribution, said it has a long track record of making businesses grow throughout North America, with expertise in the mining industry and the Canadian market. The company said Dominion’s board has refused to let it perform due diligence, which might lead to an increased offer. Continue Reading →

Canadian mining companies turn bullish on Congo, despite its violence – by Geoffrey York (Globe and Mail – March 20, 2017)

http://www.theglobeandmail.com/

JOHANNESBURG – The Democratic Republic of the Congo, the vast war-torn country in the heart of Africa, has fascinated the world’s miners for decades. Its reputation for violence and corruption has long deterred most investors – but a growing number of Canadian miners are now convinced that the rewards outweigh the risks.

Companies such as Ivanhoe Mines Ltd., Banro Corp. and Alphamin Resources Corp. are expanding their operations in Congo, betting that the country’s huge mineral resources and improving transport links will unlock profits. Political unrest and lawlessness, however, are still major concerns for many companies in the country.

Congo’s enormous mineral wealth has been estimated to be worth trillions of dollars. With more than 1,100 minerals and precious metals identified, including the world’s largest cobalt reserves and huge deposits of gold and copper, it has “the potential to become one of the richest countries on the African continent and a driver of African growth,” the World Bank says. Continue Reading →